MKT10007 Assignment: Picnic Chocolate Bar Market Analysis

This report provides a comprehensive market analysis of the Picnic chocolate bar, a product of Cadbury, focusing on its performance within the Australian market. The analysis includes an overview of the brand, its history, and its market slogan, 'Deliciously Ugly.' The report delves into the chocolate industry's growth in Australia, presenting data on chocolate consumption trends and sales figures. It examines the micro and macro factors affecting the brand, such as consumer preferences, product quality, political regulations, and market competition. The report also identifies the target customer persona for Picnic chocolate bars, considering demographics, behavior patterns, motivations, and media consumption habits. Finally, the report concludes with a summary of the key findings and insights into the brand's market position.

Running head: MARKET ANALYSIS
Picnic Chocolate Bar- Market Analysis
Name of the Student:
Name of the University:
Author note:

1
MARKET ANALYSIS
Table of Contents
Introduction......................................................................................................................................2
Discussion........................................................................................................................................2
Summary of the brand.................................................................................................................2
Analysis of Macro and Micro Environment................................................................................5
Persona of Target Customers.......................................................................................................6
Conclusion.......................................................................................................................................7
Reference.........................................................................................................................................8

2
MARKET ANALYSIS
Introduction
The main purpose of the assessment is to analyze the brand of Picnic Chocolate Bar
which are quite popular in the market and are exclusively sold with different combinations in
Australia, parts of Canada, New Zealand and UK. The brand is a part of the Cadbury products
and is mainly made up of Milk chocolate and peanuts as its major ingredients. The discussion
would be providing details regarding the trends of sales and brand popularity in the Australian
Market. The assessment would be dealing with one major macro and micro factor affecting the
brand (Mondelezinternational.com. 2019). Further the discussion would also be including the
target market which the brand would be focusing on for enhancing its sales.
Discussion
Summary of the brand
Picnic chocolate bar is a well-known chocolate bar brand in Australia. The chocolate bar
is manufactured by Cadbury, United Kingdom. The brand is sold in limited-edition in Australia
and offers chocolate bar with different combinations so that the customers are able to have a
different taste from the product. The brand Picnic bar was first created in the year 1958 in UK
(Cadbury.com.au 2019). The market slogan for Picnic chocolate bar is “Deliciously Ugly” which
was released in the year 2000. In Australia, the sale of such a Chocolate is in limited edition in
general but the same is still preferred by most of the consumers.
As per the analysis of the Australian market, the chocolate industry has really flourished
over the years and this is the reason that new brands are coming up for the meeting the high
demand. As per research conducted, the consumption of chocolate has increased significantly
from 2013 onwards in Australia as around 52% of children below the age of 14 consumes boxes

3
MARKET ANALYSIS
of chocolate in a month. The consumption surge has increased so much that chocolates are sold
in Chocolate bars form, chocolate blocks and chocolate boxes as per the requirement of the
customers. A presentation can be shown regarding the trend in increase in chocolate
consumption between 2013 and 2015 which is shown below:
Figure 1: (Chocolate consumption in Australia)
Source: (Foodnavigator-asia.com. 2016)
The above table makes it clear that the chocolate industry is doing well and it has
increased several folds in 2018 which is further anticipated to enhance in the years to come. Due
to the changes in the consumption patterns which are taken place, there has been changes made
to Picnic Chocolate bar over the years such as the weight has been reduced to 46g but the
wrapper remains the same. Further in Australia, new innovative Chocolates versions of Picnic

4
MARKET ANALYSIS
have been created utilizing biscuits, caramel, raisins. In order to show the growth of different
types of chocolates in the market, a graph is presented below:
Figure 2: (Chocolate categories sales in Australia)
Source: (Techsciresearch.com. 2019)
The above chart shows market trends for different types of chocolates in Australia and
also shows the forecasted increase which is likely to take place in future considering the growth
rate of the industry. The market mix for the Picnic Chocolate product are explained below:
 Price: The prices of Picnic bar are kept at low so that the brand is able to make sales and
inspire people with its tastes. A pack of such chocolates containing 12 bars comes at $
11.01 and thereby can still generate revenue in the market.

5
MARKET ANALYSIS
 Product: The chocolate bars have an uneven mould which needs to be changed so that a
uniform shape can be achieved. The chocolate bars are rich in caramel and lots of peanuts
and raisins.
 Place: The product is under banner of Cadbury and therefore enjoys an efficient
distribution system and it is available in several retail stores and supermarkets.
 Promotion: The business has stick with its purple wraps and the same Picnic sign on the
front but the business follows an aggressive promotional strategy for Picnic Chocolate
bars even the limited offers ones (Davies and Kitchen 2015).
Analysis of Macro and Micro Environment
The brand of Picnic Chocolate bars is a part of Cadbury chocolates and therefore the
major factor which can identified affecting the product either positively or negatively in the
market are explained below:
Micro Factors
The brand Picnic Chocolate bars have been around for a long time and the product has
been able to survive in the market due to the high nutrition value and different flavors which are
provided by the product. This is because of the fact that Cadbury has an efficient research team
established in order to keep a check on the calories which are related to each chocolate bars. In
addition to this, the taste and preference patterns of the target customers are also to be considered
for analysis as they are sources through which the business is able to generate revenue by
offering appropriate products (Gallo, Antolin-Lopez and Montiel 2018). If there is a change in
the taste and preference patterns of the consumers than the business and the brand needs to apt to
such a change in the same manner. In addition to this, there are other factors as well such as the

6
MARKET ANALYSIS
quality of the products which is on offering by the business and the price which is charged for
the brand.
Macro Factors
The major macro factor which affects the brand in Australia is the political factors which
are associated with the product. The regulations which are applicable in the country is the major
constraint which can have an impact on the business and the revenue which the business is able
to generate from the brand. One of the regulations which have been brought about by the
government in the Chocolate industry is proper labelling of the products so that the consumers
are well aware of the choices and all necessary information is also available to the consumers
regarding the ingredients which is used (Meloni and Swinnen 2015). This would ensure the
safety of the customers from allergic reactions and also keep the customers well informed in this
respect. The market competitive pressure is also a factor which affects the stability of the
business and major competitor of the brand is the Nestle products which are also quite popular in
the market.
Persona of Target Customers
The target market for the picnic chocolate bars are employees who are under the age
group of 18 years as the product is mostly preferred by children and teenagers. These chocolates
are more suitable for people who have a knack for tasting different flavors and textures and it is
also referred to have a Russian taste in respect of chocolates. A typical persona of a target
customer for the business is shown below:
1. Demographic: Children/ Teenagers between the age group of 12 years to 18 years
studying in primary or high school in a city lifestyle.

7
MARKET ANALYSIS
2. Behavior Pattern: These consumers like sweet stuffs especially with nuts and caramels
and chocolate bars are the most obvious choice for such customers.
3. Motivations: Suitable costs, good quality, lots of flavors and good reputation as a milk
chocolate.
4. Frustrations: Small matters related to food likes and dislikes, privacy issues, hangout
with friend’s issues.
5. Goals: Want to be a good sports person and travel around the world with some friends.
6. Typical Media Consumption: Facebook, Instagram.
The target segment which is the brand is targeting are kids or teens who are more interested
in chocolates at this stage of life and therefore the brand is confident that it would be able to
attract customers.
Conclusion
The above discussion effectively shows the market analysis for the brand Picnic
Chocolate bars which is one of the products which is offered by Cadbury. The discussion shows
the trend of Chocolate industry in Australia and how the same has grown over the years. The
discussion also identifies micro and macro factors which affects the brand either in a positive or
negative manner. The analysis also reveals the persona of the target consumer for the brand and
how the same will be attracted to the brand.

8
MARKET ANALYSIS
Reference
Cadbury.com.au 2019. Picnic Bar . www.iconinc.com.au, I. [online]. Available at:
https://www.cadbury.com.au/Products/Chocolate-Bars/Picnic-Bar.aspx [Accessed 21 Sep. 2019].
Davies, T. and Kitchen, B., 2015. Confectionery: Growing and processing cocoa in
Australia. Food Australia, 67(5), p.28.
Foodnavigator-asia.com. 2016. Cadbury leads all categories as Australian chocolate
consumption rises. [online] Available at:
https://www.foodnavigator-asia.com/Article/2016/03/23/Cadbury-leads-all-categories-as-
Australian-chocolate-consumption-rises [Accessed 21 Sep. 2019].
Gallo, P.J., Antolin-Lopez, R. and Montiel, I., 2018. Associative Sustainable Business Models:
Cases in the bean-to-bar chocolate industry. Journal of cleaner production, 174, pp.905-916.
Meloni, G. and Swinnen, J., 2015. Chocolate regulations. The economics of chocolate, pp.268-
303.

9
MARKET ANALYSIS
Mondelezinternational.com. 2019. [online] Available at:
https://www.mondelezinternational.com/en/~/media/MondelezCorporate/Uploads/downloads/
cadbury_Fact_Sheet.pdf [Accessed 21 Sep. 2019].
Techsciresearch.com. 2019. Australia Chocolate Market Size, Share, Analysis & Forecast 2023|
TechSci Research . [online] Available at: https://www.techsciresearch.com/report/australia-
chocolate-market/1711.html [Accessed 21 Sep. 2019].